PANews reported on April 10 that, according to the Nikkei, the Japanese government passed an amendment to the Financial Instruments and Exchange Act at a cabinet meeting on April 10. This amendment, for the first time, includes crypto assets as financial products under regulation and prohibits insider trading and other illegal activities using undisclosed information. Crypto asset issuers will be required to make annual disclosures to improve the market environment. If passed by the current Diet session, the bill is expected to take effect in fiscal year 2027.

Japan's Financial Services Agency (FSA) previously regulated crypto assets as a means of payment under the Payment Services Act. However, given the recent increase in their use for investment purposes, it has decided to shift regulation to the Financial Instruments and Exchange Act. The registered business name will be changed from "Crypto Asset Exchange Operator" to "Crypto Asset Trading Operator." Regarding penalties, the imprisonment sentence for unlicensed sellers has been increased from up to 3 years to up to 10 years, and the fine has been increased from up to 3 million yen to up to 10 million yen.